The Federal Government is seeking a $1.5bn World Bank loan through three proposed financing facilities aimed at supporting climate resilience, social protection and early childhood development, even as Nigeria’s total public debt reached ₦166.79 trillion at the end of June 2026. The proposed facilities, each valued at $500 million, are still at different stages of preparation and would require approval before the funds can be accessed.
Documents from the World Bank show that the proposed financing would cover three separate programmes, with the first focused on climate resilience, the second designed to strengthen social protection and the third targeting early childhood development across Nigeria.
The development comes at a time when the country’s debt profile has continued to expand, with fresh figures showing that total public debt increased by ₦14.39 trillion, or 9.44 per cent, between June 2025 and June 2026.
World Bank Loan Targets Climate and Social Protection
The first proposed facility under the $1.5bn World Bank loan package is an additional $500 million for the Agro-Climatic Resilience in Semi-Arid Landscapes project, commonly known as ACReSAL.
The World Bank has scheduled October 29, 2026, as the estimated date for its board to consider the additional financing, which would increase the total size of the ACReSAL project from its previously approved $700 million to $1.2 billion. The Federal Republic of Nigeria is listed as the borrower, while the Federal Ministry of Environment is responsible for implementing the project.
ACReSAL operates across 19 northern states and the Federal Capital Territory, where it addresses issues such as land degradation, water insecurity, climate vulnerability and declining agricultural productivity. The proposed additional financing would support landscape restoration, watershed rehabilitation, erosion and flood management, irrigation and drainage.
The project would also cover water harvesting and storage, reforestation and other measures designed to improve communities’ ability to cope with climate-related challenges. According to the World Bank documents, the additional $500 million would include $310 million for dryland management, $165 million for community climate resilience and $25 million for institutional strengthening and project management.
Another $500 million facility under consideration would support the Household Prosperity and Empowerment-Social Protection Project, known as HOPE-SP, which is designed to strengthen Nigeria’s social protection system and expand assistance to poor and vulnerable households.
The proposed programme would support targeted unconditional and conditional cash transfers, modernise the social registry, integrate the National Identification Number into the social protection information system and improve implementation across federal, state and local government levels.
Unlike the ACReSAL financing, the HOPE-SP project remains at an earlier preparation stage, with its technical design review expected on October 30, 2026, while the World Bank has tentatively set March 16, 2027, for approval.
Early Childhood Programme and Nigeria’s Rising Debt
The third facility would provide another $500 million for Nigeria’s proposed Early Childhood Development programme, which would cover all 36 states and the Federal Capital Territory and focus on children between zero and five years of age.
The programme would bring together support for health, nutrition, early learning, childcare, water and sanitation, with the World Bank identifying early childhood development as an important area for improving long-term human capital in Nigeria. The proposed financing would consist of a $400 million programme-for-results component and $100 million in investment project financing.
The proposed $1.5bn World Bank loan package therefore covers areas that directly affect communities, from climate-related risks and household support to services for young children, although each facility remains subject to the relevant approval processes.
Meanwhile, Nigeria’s public debt increased from ₦152.40 trillion in June 2025 to ₦166.79 trillion in June 2026, representing a year-on-year increase of ₦14.39 trillion. The debt stock also increased by ₦7.44 trillion between March and June 2026.
Nigeria’s World Bank exposure also stood at about $20.73 billion at the end of June 2026, according to the World Bank’s financial data, although the World Bank’s own figures put the June exposure at approximately $19.14 billion for IDA and $1.84 billion for IBRD when guarantees and the institution’s current reporting categories are considered.
The figures highlight the scale of Nigeria’s existing relationship with the World Bank as the Federal Government considers additional financing for development programmes.
If approved, the three proposed facilities would provide a combined $1.5 billion for the identified programmes, while adding to Nigeria’s existing external financing commitments. The proposed borrowing therefore comes alongside continuing efforts to address climate risks, expand social protection and improve services for young children across the country.
The World Bank has previously provided substantial financing to Nigeria for economic reforms, human capital development and climate resilience, including a $1.5 billion financing package approved in 2024 to support economic stabilisation and reforms.
